It was “a mockery of justice” which gave comfort to terrorists around the world, he said. As controversy raged over the killer of 270 people in 1988, Lord Mandelson blasted “offensive” claims that Libya and Britain struck a deal to free the bomber.[>

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He said there was no link between ­business relations and the release.[>

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Libyan leader Colonel Gaddafi’s son Saif earlier heaped pressure on the Government when he claimed a lucrative trade ­agreement had secured the terrorist ­killer’s freedom. But as furious opposition leaders demanded answers the ­business secretary hit back.[>

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“It’s not only completely wrong to make such a ­suggestion it’s also offensive,” he said.[>

Praise[>

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“As I have already stated, on both occasions Mr Gaddafi raised the issue of the Libyan prisoner in Scotland’s release as all representatives of the Libyan government do.[>

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“The issue of the prisoner’s release was entirely a matter for the Scottish Justice Minister.”[>

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Lord Mandelson spoke out after Libyan television showed pictures of Col Gaddafi ­meeting Megrahi and ­praising “my friend” Gordon Brown’s Government for helping ­secure his freedom.[>